This civil construction company delivered over 183% returns in a year; do you hold it?

 An investment of Rs 1 lakh in the shares of this company 1 year ago would have turned to Rs 2.83 lakh today.

Power Mech Projects Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price jumped from Rs 872.80 on 8 April 2022 to Rs 2471.60 on 10 April 2023, an increase of 183% in the one-year holding period.

Recent performance highlights

In the recent quarter Q3FY23, on a consolidated basis, the company’s net profit increased by 61.88% YoY to Rs 52.24 crore. The company’s net revenue increased by 40.75% YoY to Rs 909.11 from Rs 645.91 crore.

The company is currently trading at a PE of 20.6X against the industry PE of 20.2x. In FY22, the company delivered an ROE and ROCE of 14.4% and 17.8%, respectively. The company is a constituent of Group B stocks and commands a market capitalization of Rs 3701 crore.

Company Profile

Power Mech Projects Ltd, founded in 1999, is an engineering and construction firm that specializes in the installation, testing, and commissioning (ETC) of boilers, turbines, and generators, as well as a balance of plant (BOP), civil works, and operation and maintenance (O&M). The firm works on ultra mega power, supercritical thermal power, and subcritical power projects.

Growth Drivers

The company is divided into eight strategic units: Industrial Services, Industrial Construction, Overseas Business, Electricity Transmission & Distribution, Infrastructure Construction, Hydro Power & Water, Manufacturing & Heavy Fabrication, and Mining.

As of March 31, 2022, the Company has 10 subsidiaries, 2 joint ventures, GTA Power Mech Nigeria Ltd (Nigeria) and GTA Power Mech DMCC (Dubai), and 1 partner, Mas Power Mech Arabia.

Share price movements

Today, the share of Power Mech Projects Ltd opened at Rs 2548.70 and has touched a high and low of Rs 2548.70 and Rs 2460, respectively. So far 2542 shares have been traded on the bourses.

At the time of writing, the shares of Power Mech Projects Ltd were trading at Rs 2497.50, a decrease of 0.63% from the previous day’s closing price of Rs 2513.30 on BSE. The stock has a 52-week high and low of Rs 2,548.70 and Rs 810.95 respectively on BSE.